The Gap, Inc. (GAP)

Days of inventory on hand (DOH)

		Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019
Inventory turnover		4.25	4.63	4.57	3.92	4.32	4.32	4.29	3.43	3.25	3.17	3.32	3.60	4.33	4.06	3.71	3.40	4.19	4.39	4.75	3.76
DOH	days	85.78	78.79	79.90	93.22	84.41	84.44	85.01	106.39	112.27	115.06	109.79	101.48	84.28	89.95	98.36	107.36	87.02	83.19	76.77	97.07

August 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.25
= 85.78

The Days of Inventory on Hand (DOH) measures the number of days it takes for a company to sell its average inventory. A lower DOH indicates that the company is managing its inventory efficiently, while a higher DOH may suggest overstocking or slower inventory turnover.

Analyzing The Gap, Inc.'s DOH over the past years, we can observe fluctuations in the metric. From Nov 2019 to Aug 2024, the DOH ranged from a low of 76.77 days to a high of 115.06 days.

The company's DOH peaked at 115.06 days in Apr 2022, indicating that, on average, it took The Gap, Inc. over three months to sell its inventory. This could imply potential issues with inventory management, such as overordering or poor inventory turnover.

Conversely, the lowest DOH of 76.77 days in Nov 2019 suggests a more efficient inventory turnover rate, possibly due to effective sales strategies or inventory management practices.

Overall, a trend of decreasing DOH over time would indicate an improvement in inventory management efficiency, while a rising trend may signal potential challenges in managing inventory levels effectively. Further analysis of the company's operations and industry benchmarks would provide additional insights into The Gap, Inc.'s inventory management performance.